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Aptiv (APTV) to Post Q4 Earnings: How Are Things Shaping Up?

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Aptiv PLC (APTV - Free Report) is set to report fourth-quarter 2018 results on Jan 31, before the bell.

The company has an Earnings ESP of -1.47% and a Zacks Rank #3 (Hold), a combination that lowers the possibility of an earnings beat. Per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.

In the last reported quarter, the company posted a negative surprise of 3.76%. In the past year, the stock has lost 23.1% compared with the Zacks S&P 500 composite’s 6.6% decline.

Let’s see how things are shaping up for this announcement

Recap of Third-Quarter Performance

Aptiv’s third-quarter earnings of $1.24 per share surpassed the Zacks Consensus Estimate by 4 cents and met the midpoint of the guidance.

Revenues of $3.5 billion exceeded the consensus mark by $63 million, slightly below the midpoint of the guidance.

Notably, this marked the 11th consecutive quarter of the Advanced Safety and User Experience segment’s solid double-digit growth.

Factors at Play

The top and the bottom line continue to benefit from strong demand for its portfolio of technologies and flexible cost structure.

The Advanced Safety and User Experience segment is in good shape, backed by strength across Active Safety and the infotainment in user product lines. Consistent progress with automated driving software, vehicle architecture and connected services enables the company to uniquely optimize advanced safety and infotainment user experience solutions, thereby driving business wins.

The Signal and Power Solutions segment also looks promising, courtesy of increasing high voltage electrification and engineered components volumes. The acquisitions of Winchester and KUM have strengthened the segment.

Aptiv PLC Revenue (TTM)

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings:

Booz Allen Hamilton (BAH - Free Report) has an Earnings ESP of +4.22% and a Zacks Rank #1. The company is slated to release third-quarter fiscal 2019 results on Feb 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

First Data has an Earnings ESP of +4.35% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2018 results on Feb 7.

IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #3. The company is expected to report fourth-quarter 2018 results on Feb 13.

Zacks' Top 10 Stocks for 2019

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